It involves considerable computing power, and the complex algorithm at the core of Bitcoin makes the creation of additional Bitcons more difficult (and thus more expensive) the more Bitcoins are already in existence.

The difficulty of minting bitcoin is based on difficulty of the problem, not that there are more bitcoin in existence. The difficulty of the problem is determined by hashing rate and speed of which bitcoin is minted, and is adjusted with an eye of keeping the minting rate on schedule.

A hybrid approach might make sense until the Bitcoin network has a longer track record.

A private gold storage company, established in a safe jurisdiction, could accept Bitcoins for gold and redeem gold for Bitcoins. Unfortunately you would lose the advantages of Bitcoin’s low holding cost and some of the safety from sovereign seizure.

But what you gain would be reduced exposure to the long term risk of Bitcoins losing value and you would still be able to access your money quickly in a bank-free form that trades more easily than gold certificates from a private reserve.

The challenge is to create a system that is immune from the risk of the exchange absconding with the gold (e.g. e-Gold). Ideally there would be a way to trust the exchange that does not depend on recourse to the legal system. No obvious way comes to mind.

This is one of the best articles ever. In general. Schlichter just owns and I hope this one makes waves in the libertarian and goldbug communities, since there are still way too many Bitcoin skeptics in those circles.

+100 for Detlev. You're the man.

I just started reading his book "paper money collapse" btw. I'm only 10% in and he is on fire from page 1. His passion shines through, I can already recommend the book even though I've read only a small portion.

This is one of the best articles ever. In general. Schlichter just owns and I hope this one makes waves in the libertarian and goldbug communities, since there are still way too many Bitcoin skeptics in those circles.

There are many people in those circles who have spent a lot of money buying gold and silver and desperately hope to become wealthy because of it. Anything development which suggests this might not happen is treated with great hostility.

This is one of the best articles ever. In general. Schlichter just owns and I hope this one makes waves in the libertarian and goldbug communities, since there are still way too many Bitcoin skeptics in those circles.

There are many people in those circles who have spent a lot of money buying gold and silver and desperately hope to become wealthy because of it. Anything development which suggests this might not happen is treated with great hostility.

This is one of the best articles ever. In general. Schlichter just owns and I hope this one makes waves in the libertarian and goldbug communities, since there are still way too many Bitcoin skeptics in those circles.

There are many people in those circles who have spent a lot of money buying gold and silver and desperately hope to become wealthy because of it. Anything development which suggests this might not happen is treated with great hostility.

Then, change the direction of the hope and herd towards Bitcoin now! and they will!